Contestants on The Price Is Right may win big but may
also be unprepared for the hefty taxes owed before receiving their prizes. Winners must pay California’s state income
tax up front as well as federal income taxes.
If the prize is large enough, it could even bump you into a higher
federal tax bracket.

According to Andrea
Schwartz, who won a Mazda 2 compact car, she had to pay $2,500 in taxes before
she could claim the car or end up forfeiting the prize. Another contestant explains that once you get
a call from the car dealership during the 90-day window, you only have 10 days
to arrange the paperwork, pay the taxes, and go pick up your new car wherever
the dealership may be.

Schwartz also won a pool
table and shuffle board table, which she had to pay money to store and ship to
another location due to the small size of her apartment. She had to sell the prizes because the show
does not allow you to take the cash value of any prizes. That includes extravagant vacations, which
contestants must also pay sales and income taxes on or forfeit.

Economics is not the first thought that comes to minds of millions of individuals who enjoy the great American pastime. However, economics has become the talk for analysts at ConvergEX Group. Their analysts determined that a correlation exists between consumer confidence and attendance, which is good news for investors if attendance increases by 3 to 5%, as predicted by Commissioner Bud Selig, in the upcoming season. Analysts from ConvergEx argue that baseball attendance has mirrored consumer confidence in the past too. Attendance declined at the beginning of the recent recession in 2007 and has steadily increased since 2008.

Based upon the predicted modest percentage increase in attendance during this current season, it is likely that the economy will also enjoy a modest recovery. What is the reason for this correlation? According to CNBC.com, it is likely based upon the demographics of the average baseball attendee. Most are upper-middle class, and are likely members of what one would consider the average American household. Therefore, how the average American feels about the economy is actually how the average baseball fan feels about the economy. Let's just hope that more and more Americans will decide to go out to the old ballgame this summer.